Introduction

Green hydrogen is hydrogen produced through electrolysis of water using renewable electricity, with its environmental value depending on the renewable character of the electricity and the emissions associated with the production process. In India, green hydrogen is increasingly treated as an important component of decarbonisation, energy security, industrial policy and renewable-energy development.

The legal status of a green hydrogen production facility is therefore not based upon a single statute. Rather, such a facility operates within a combination of energy, environmental, land, water, electricity, industrial-safety and contractual laws. The National Green Hydrogen Mission and the Green Hydrogen Standard for India provide an important policy and regulatory foundation. The Ministry of New and Renewable Energy (MNRE) formally notified the Green Hydrogen Standard in 2023. (Ministry of New and Renewable Energy)

A green hydrogen facility may consequently be understood as a lawfully established industrial and energy installation, subject to the permissions, environmental safeguards, technical standards and regulatory conditions applicable to its particular location and technology.

1. Meaning and Legal Character of a Green Hydrogen Facility

A typical green hydrogen project may contain:

renewable electricity generation or a renewable power procurement arrangement;

an electrolyser;

water-treatment and purification systems;

hydrogen compression and storage facilities;

pipelines or transportation infrastructure;

power-conversion equipment;

cooling and auxiliary systems;

safety and monitoring equipment; and

sometimes ammonia or other hydrogen-derivative production facilities.

Legally, therefore, a green hydrogen plant is not simply a "fuel-production facility." It can simultaneously constitute an industrial establishment, electricity-consuming installation, renewable-energy project and potentially a hazardous-chemical installation.

Its precise regulatory obligations depend upon factors such as capacity, location, source of electricity, water source, storage quantity and associated chemical processes.

2. National Green Hydrogen Mission

The principal policy framework is India's National Green Hydrogen Mission. Its purpose is to create an enabling ecosystem for production, use and export of green hydrogen and its derivatives.

The Mission is important from a legal perspective because it establishes governmental mechanisms for:

supporting green hydrogen production;

developing manufacturing capacity;

facilitating renewable-energy supply;

creating standards and certification mechanisms;

promoting infrastructure;

supporting research and innovation; and

developing domestic and international markets.

The Green Hydrogen Standard is particularly significant because it establishes the basis for determining when hydrogen can qualify as "green" under India's framework. (Ministry of New and Renewable Energy)

Thus, a facility cannot necessarily rely merely upon its description as a "green hydrogen plant"; its production must satisfy the applicable regulatory and certification requirements.

3. Constitutional Foundation

The constitutional foundation of regulation of green hydrogen facilities comes principally from Article 21, Article 48A and Article 51A(g).

Article 21 has been judicially interpreted to include protection of environmental quality. Article 48A directs the State to protect and improve the environment, while Article 51A(g) imposes a corresponding fundamental duty upon citizens.

In Vellore Citizens' Welfare Forum v. Union of India, (1996) 5 SCC 647, the Supreme Court recognised sustainable development as an important legal principle and held that the precautionary principle and polluter-pays principle are part of Indian environmental law. (Indian Kanoon)

This is directly relevant to hydrogen projects because the fact that hydrogen is promoted as a clean fuel does not exempt the production facility from environmental law.

4. Environmental Clearance and Environmental Regulation

Depending on the nature and scale of the project, environmental-clearance requirements under the Environment (Protection) Act, 1986 and the EIA Notification, 2006, together with other applicable environmental legislation, may become relevant.

A project developer may have to address:

land-use impacts;

air emissions;

wastewater;

hazardous substances;

solid and chemical waste;

ecological impacts;

water consumption;

construction impacts; and

cumulative environmental effects.

The legal principle is that a project's claimed contribution to decarbonisation does not automatically eliminate environmental scrutiny.

In M.C. Mehta v. Union of India, the Supreme Court emphasised that environmental protection may require restrictions on activities capable of causing ecological degradation and reaffirmed the precautionary principle. (Indian Kanoon)

Therefore, regulators can require environmental safeguards even where the underlying project serves a climate-related objective.

5. Water Law

Water is one of the most important legal issues for electrolytic hydrogen production because electrolysis requires purified water.

A green hydrogen facility may therefore require lawful access to:

surface water;

groundwater;

municipal water;

treated wastewater; or

another authorised water source.

Groundwater extraction can be particularly significant because groundwater regulation operates through central and state mechanisms and may require permissions or compliance with applicable restrictions.

The legal issue is broader than simply obtaining sufficient water. A project must consider inter-generational equity and competing community uses of water.

The Supreme Court's environmental jurisprudence makes clear that natural resources cannot be treated as unlimited commodities. In Vellore, the Court identified conservation of natural resources and inter-generational equity among the principles associated with sustainable development. (Indian Kanoon)

6. Electricity and Renewable-Energy Law

A green hydrogen facility normally requires substantial electricity for electrolysis. Consequently, the Electricity Act, 2003 and regulations issued under it can become important.

Issues may include:

procurement of renewable electricity;

open access;

transmission and distribution arrangements;

captive generation;

power purchase agreements;

renewable-energy certificates or other attributes;

electricity charges and applicable exemptions;

grid connectivity; and

electricity scheduling and balancing.

The legal character of hydrogen as "green" is therefore closely connected with the legal character and traceability of the electricity used for its production.

Where renewable electricity is supplied from a separate generating facility, contractual and regulatory arrangements must demonstrate the relevant renewable-energy connection required under applicable rules and certification procedures.

7. Land and Project Approvals

Green hydrogen facilities are industrial projects and therefore require lawful control over the project site.

Depending upon the circumstances, developers may need to address:

land acquisition or purchase;

industrial land-use permissions;

conversion of agricultural land;

zoning requirements;

building permissions;

local authority approvals;

environmental restrictions;

forest or wildlife permissions where applicable; and

infrastructure rights of way.

The legality of the facility therefore depends not merely upon obtaining permission to manufacture hydrogen but upon securing lawful authority for the entire project footprint.

8. Industrial Safety and Hazardous Substances

Hydrogen is highly flammable and requires specialised safety management.

The legal framework can involve legislation and rules concerning:

factories;

occupational health and safety;

pressure vessels;

hazardous chemicals;

fire safety;

industrial emergency planning;

transportation of hazardous substances; and

storage and handling.

This becomes particularly important when hydrogen is compressed or stored in substantial quantities.

A project developer therefore has a legal obligation to design the facility around risk prevention rather than treating safety as merely an operational matter.

9. Absolute Liability and Environmental Damage

One of the most important case-law principles applicable to industrial hydrogen facilities is the doctrine of absolute liability.

In M.C. Mehta v. Union of India (Oleum Gas Leak Case), (1987) 1 SCC 395, the Supreme Court developed the principle that enterprises engaged in hazardous or inherently dangerous activities can be subject to stringent liability for harm resulting from those activities.

This principle becomes relevant where hydrogen production, compression or storage creates significant risks to workers, neighbouring communities or the environment.

The fact that hydrogen is a clean energy carrier does not eliminate liability for accidents or environmental damage caused by the facility.

10. Polluter Pays Principle

The polluter-pays principle is particularly relevant where a hydrogen facility causes environmental damage.

In Vellore, the Supreme Court held that polluter pays extends beyond compensation to victims and can include the cost of restoring environmental degradation. (Indian Kanoon)

Consequently, if a green hydrogen facility contaminates groundwater, causes unlawful emissions or produces other environmental damage, its operator may face:

compensation;

environmental restoration costs;

regulatory penalties;

remediation directions; and

other statutory consequences.

This provides an important legal distinction between green technology and green compliance: the former does not guarantee the latter.

11. Precautionary Principle

The precautionary principle requires environmental risks to be addressed before serious damage occurs.

The Supreme Court in Vellore stated that where there is a threat of serious or irreversible environmental damage, scientific uncertainty should not be used as a reason for postponing preventive measures. (Indian Kanoon)

Applied to hydrogen facilities, this principle supports regulatory attention to:

hydrogen leakage;

explosion risks;

water stress;

hazardous storage;

pipeline safety;

fire protection;

waste streams; and

cumulative environmental impacts.

Thus, environmental and safety regulators can legitimately impose preventive conditions even where the technology is relatively new.

12. Sustainable Development

Green hydrogen facilities illustrate the principle of sustainable development because they seek to reconcile industrial development with environmental protection.

In Vellore, the Supreme Court described sustainable development as a balancing concept between environmental protection and development and recognised principles including inter-generational equity, conservation of natural resources, precaution and polluter pays. (Indian Kanoon)

Therefore, courts are likely to examine a green hydrogen project through two interconnected questions:

First: Does the project contribute to legitimate economic and energy objectives?

Second: Is the project being developed and operated in accordance with environmental and public-law requirements?

Both questions are legally significant.

13. Important Case Laws

The Supreme Court's environmental jurisprudence consistently establishes that technological or economic development remains subject to environmental safeguards.

14. Regulatory Certification of Green Hydrogen

An important distinction must be made between:

(a) producing hydrogen, and
(b) legally demonstrating that the hydrogen qualifies as "green hydrogen."

The second question requires compliance with the applicable Green Hydrogen Standard and certification framework.

India's Green Hydrogen Standard was issued through MNRE's policy framework in 2023. (Ministry of New and Renewable Energy)

Certification is legally important because claims concerning the environmental character of hydrogen may affect:

government incentives;

procurement;

export markets;

emissions accounting;

renewable-energy claims;

corporate sustainability reporting; and

contractual obligations.

False or unsupported claims concerning the environmental attributes of hydrogen may therefore create regulatory and contractual risks.

15. Legal Rights and Obligations of Operators

A legally established green hydrogen facility may enjoy rights such as:

access to applicable government incentives;

participation in renewable-energy markets;

electricity procurement through legally permitted mechanisms;

contractual rights under PPAs and supply agreements;

access to infrastructure subject to applicable regulation; and

participation in domestic and international hydrogen markets.

At the same time, operators have obligations relating to:

environmental compliance;

worker safety;

water use;

electricity regulation;

hazardous-material management;

accurate green-hydrogen certification;

monitoring and reporting;

emergency preparedness; and

remediation of environmental damage.

16. Role of Courts and the National Green Tribunal

Disputes concerning green hydrogen projects may potentially reach constitutional courts or the National Green Tribunal (NGT) where they involve environmental questions falling within its jurisdiction.

Courts and tribunals may examine:

whether statutory approvals were obtained;

whether environmental conditions were complied with;

whether authorities applied the precautionary principle;

whether affected communities were considered;

whether environmental damage occurred; and

whether restoration or compensation is required.

The judicial approach established in Vellore means that environmental protection is not merely an administrative preference but forms part of India's legal framework. (Indian Kanoon)

Conclusion

The legal status of green hydrogen production facilities in India is that of regulated industrial-energy infrastructure rather than an unregulated clean-energy activity. The National Green Hydrogen Mission and India's Green Hydrogen Standard provide the policy and certification foundation, while environmental, electricity, water, land, industrial-safety and hazardous-substance laws determine the conditions under which individual facilities may legally operate. (Ministry of New and Renewable Energy)

The most important judicial principles are sustainable development, precautionary principle, polluter pays, environmental protection under Article 21 and stringent liability for hazardous activities. Vellore Citizens' Welfare Forum is particularly significant because it expressly incorporated precaution and polluter pays into Indian environmental law. (Indian Kanoon)

Accordingly, the legal legitimacy of a green hydrogen facility depends on more than its climate-friendly purpose. The facility must demonstrate lawful land and water use, regulatory approvals, safe industrial operation, legally compliant renewable-energy sourcing, environmental protection and valid certification of its green attributes. Green hydrogen policy therefore represents not an exemption from environmental law, but an emerging area in which energy transition objectives and established principles of environmental governance operate together.